RPPS AS AN EXPRESSION OF STATE CAPACITY AND PATH DEPENDENCE IN BRAZILIAN FEDERALISM

Abstract

This essay proposes an analytical shift in the study of Brazilian Public Sector Pension Schemes (RPPS), moving the focus away from actuarial and normative aspects toward an institutional perspective grounded in public policy analysis. It argues that RPPS should be understood as institutions that express central dimensions of state organization at the subnational level, particularly within federal contexts marked by unequal state capacities and path-dependent dynamics. The analysis articulates models of social protection, institutional arrangements, and financing methods to demonstrate that pension systems embody choices regarding the distribution of risks, responsibilities, and resources over time. It also examines the relationship between RPPS and public finances, highlighting their effects on resource allocation, intertemporal commitments, and fiscal sustainability. The study argues that the establishment of RPPS was frequently associated with greater local autonomy in pension management, generating short-term fiscal incentives and deferred costs over time, especially in light of the challenges involved in transitioning between financing methods. As a contribution, the essay repositions RPPS as an analytical lens for understanding the Brazilian state, showing that their outcomes reflect the interaction between state capacities, federal arrangements, and institutional trajectories in decentralized and unequal contexts.